So where is it going now?
It's all very simple. Give lots of taxpayer dollars to companies that are "too big to fail". Then arrange for some of that money to be paid to political allies.Now, Attorney General Eric Holder and Civil Rights Division chief Thomas Perez have a new plan. Any unspent money will not go back to the defendant but will instead go to a "qualified organization" approved by the Justice Department. And if there is not enough unspent money -- that will be determined by the Department -- then the defendant might be required to come up with more money to give to the "qualified organization."
The arrangement was used in a recently-settled case, United States v. AIG Federal Savings Bank and Wilmington Finance. The Justice Department alleged that AIG violated the Fair Housing Act and the Equal Credit Opportunity Act by allowing third-party wholesale mortgage brokers to "charge African-American borrowers higher direct broker fees for residential real estate-related loans than white borrowers." The financial institution denied any wrongdoing, and there was no factual finding of wrongdoing. Nevertheless, under the terms of a March 19, 2010 consent decree, AIG agreed to pay $6.1 million to "aggrieved persons who may have suffered as a result of the alleged violations."
That is standard procedure in such cases. But then AIG also agreed, in the words of the consent decree, to "provide a minimum of $1,000,000 to qualified organization(s) to provide credit counseling, financial literacy, and other related educational programs targeted at African-American borrowers." The money would come from unspent funds in the victim-compensation fund. But if it turned out that, after paying off the victims, there was less than $1 million left in the victim-compensation fund, AIG agreed to "replenish the settlement fund so that it contains $1,000,000 for distribution for those educational purposes."
The consent decree directs AIG to consult with the Justice Department on which "qualified organizations" could receive money, and it gives the Department the right to approve where the money will go. In any event, the money will go to groups who have no direct connection to the lawsuit and its allegations of discrimination.
The "stimulus bill" was just a Chicago-style political slush fund. Now it's Federal law!!!!!!!
And then there's Government Motors...
Had enough already........?When General Motors went through bankruptcy last year, it suspended its political donations. Now that it's owned by the U.S. government, it's donating to lawmakers' pet projects again.
The carmaker gave $41,000 to groups associated with lawmakers, the vast majority of it -- $36,000 -- to the Congressional Black Caucus Foundation, the company reported on a disclosure form last week. The CBC Foundation is a charity with 11 members of the Congressional Black Caucus on its board.